Press Corporation Plc (PCL) has implemented a share split aimed at making its shares more accessible to investors and improving their tradability on the market.
Speaking in Blantyre, PCL Chief Executive Officer Ronald Mangani said the move was intended to broaden participation in the company’s shareholding by making it easier for more people to buy and trade PCL shares.
Mangani explained that the share split does not change the underlying value of the company or the value of shareholders’ investments.
“At first, PCL shares were selling at a discount, but now they are selling at their true market value,” Mangani said.
He said the split should make PCL shares more affordable to individual investors who may previously have found the price of a single share relatively high.
According to Mangani, the number of shares held by investor’s changes as a result of the split, but the overall value of their investment remains unchanged because the price per share adjusts accordingly.
He emphasised that the exercise should not be interpreted as an increase or decrease in the fundamental value of PCL.
“People’s shares have not changed and the value of the company remains the same,” Mangani said.
He added that the initiative is expected to create an opportunity for more Malawians and other investors to participate in the ownership of PCL, potentially increasing activity and liquidity in the company’s shares.
Mangani said increasing the number of people able to invest in PCL could also support the company’s long-term growth by widening its shareholder base.
For existing shareholders, the split means they will hold a larger number of shares, while the price of each individual share will be adjusted proportionately. As a result, the overall value of their holdings should remain broadly unchanged immediately after the split, subject to movements in the market price.
Mangani said PCL believes the move will contribute to making its shares more accessible and easier to trade, while creating room for increased participation in the company.
He encouraged potential investors to view the share split as an opportunity to consider investing in PCL rather than as a change in the company’s underlying value.
